Gary_M

Hey gang,

I'm posting this in the Canadian forum (vice general) in order to ensure that the most accurate figures result.

I have a bunch of options for an impending 911 purchase, including private sale, dealer lease, and dealer finance.

While looking at CPO offerings, I went to compare them to new listings at the same dealer and noticed a 2018 991 CS that spoke to me. I ran some numbers in a homemade calculator and figured I could lease this car for around $1700/month. I then asked the dealer for their numbers and was surprised to see that their quote was over $1000 higher: > $2700/month. The salesman then sent a second email with a quote attached and I saw the difference right away: I had assumed a residual of 60%, while their quote used 40%.

My surprise turned to "shock" at the notion that a 911, apparently, has one of the lowest residual (or highest depreciation) values in the known universe.

Being a curious sort, I then looked all-over Canada for 4 year old CS cars and (not surprisingly) not a single one of them was being offered for anywhere near 40% of their original MSRP... Way more than double that in most cases.

Anyway, my question: Does anybody have any recent experience (or even insider knowledge) to support or refute a 60% depreciation over a 48 month lease on a 2018 Carrera S?

Thanks a ton,

Cheers!

Gary

Onami

Gary_M

CamsPorsche

Porsche leases are the probably the worst I've seen in the market to be honest. Very low residuals and wicked high money factors...

I'd go with a 3rd party leasing company and negotiate the upfront interest they load.

bcrdukes

Wow, and I thought BMW was bad...

hbear

I don't see it that way. Dealer wants to sell another Porsche so will give the customer the "equity" value of the lease return to get them into a new car. Residuals are kept artifically low to ensure customer has "equity" in their car at the end which makes a good "upgrade" conversation. (no cash required, get you into a new car, lower your payments, etc.)....it's how they do business.
If customer just walks away, it's a tidy profit for the dealer to fkip the car. On that end, any customer that doesn't buy the car out at the end and just walks away...I'll just shake my head at them as it's an easy flip. (unless one doesn't have the cash flow to buy it out, but then you'd have other problems)

Point is, low residual keeps the customer in the market by providing a big incentive to buy another car, and Porsche is not stuck with a pile of used inventory they can't move. Given the buy out or flip decision is typically based on what the market value of the car is to the residual owed....often keys are given back when the car is worth less than residual...then it's the dealer's problem and they certainly don't want that.

Money factors are a different conversation, Porsche is awful, but then again it doesn't seem to be hurting demand.

Onami

I have never heard of anyone being given back any equity from Porsche in recent times...however, I don't know many people who lease a P-car personally anymore. My last P-car lease was in 2008 and the residuals back then were OK.

theiceman

Basically they make money on evry single transaction.
You have to think there are lots of customers paying it if they are doing it . I imagine many Porsche leases are written off to customer businesses so they are writing off large portion of the lease payment anyway.
Bottom line is there is good business in it for Porsche so they do it.

LastMezger

Try PFAFF Leasing or MVL.

Gary_M

Thanks; I'll look them up.

My bank also offers pretty attractive terms if run through a dealer. I asked the dealer in question to have a look at that and haven't heard back yet.

Cheers!

Gary

BIG smoke

I agree with most leases being paid by business with write off's.
If I had the ability, I would take advantage of that.
Also, I'm sure most people over option their cars.
Really there is little value in a leather dash upon resale. Sure it's nice, but what is it worth?
If the car is 90k and you add 36k in options? The 36k is divided into 36 payment @1000 bucks.
All these shops are privately owned franchises. They do what they want, and what they can get away with.
If it were my money? Try a corporate store. They will be more in line with internal requirements.

https://www.porschecentrenorthtoronto.ca/

Gary_M

Thanks for the replies everyone.

I've been waiting to hear back from this dealer since Saturday - nothing but crickets.

Time to think about a trip to the Big City, I guess

Cheers!

red996

Crazy how a 100k car doesn't come with full leather interior standard. Me? I won't buy a car without a full leather interior. Dash and door panels at least. I think my priorities are screwed up. LOL.

bcrdukes

Off-topic, but I was not aware Porsche Centre North Toronto was a corporate owned store. Interesting!

Turbodan

I am not an accountant but I recall my accountant saying you can't write off more than 1k /month /car on a lease with ccra as it becomes more than transportation.